Small business owners can make substantial savings during the economic downturn by renegotiating contracts with suppliers, according to a management consultancy.

The Gap Partnership believes that contracts signed six months ago fail to reflect the risk and uncertainties of the current climate and should be renegotiated accordingly.

"Failing to renegotiate your contracts translates to paying over the odds," said Steve Gates, managing partner. "The recession has changed what represents value and now is the time to revisit deals agreed before summer last year.

Price is often considered the most important negotiation point. But if you remove price from the equation and focus on other variables - such as storage, delivery and promotional investment - you can start to create more value and do better deals."